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- YES, THERE ARE DIFFICULTIES, BUT THEY CAN BE OVERCOME!
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- So you have heard about great opportunities in Japan and
- its necessary role in your firm's international marketing
- strategy. You have also been warned of the great
- difficulties your firm will face. You have been told that
- your goods may be treated unfairly, that you will have to
- adapt your product to the Japanese market, and that the
- distribution system in Japan is too mysterious and complex.
- Beyond these problems, you recognize that you will face
- impenetrable cultural barriers. However, only some of this
- is true to a limited degree, and these perceptions should
- not deter you from taking advantage of one of the world's
- largest and richest markets.
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- Unquestionably, Japan is a difficult market to crack and,
- as in most countries, there are cases of protectionism.
- Nevertheless, Japan is not the "closed market" of even a
- decade ago. There are now very few formal barriers to
- trade in the form of quotas and tariffs. For those who
- have a quality product and are willing to undertake the
- high cost of initial market entry in the world's most
- expensive country, it is possible to achieve a substantial
- market share and to make significant profits. The
- regulatory system is still complex, but the Japanese
- Government has substantially removed the legal and
- administrative restrictions on imports and foreign
- investment in Japan that traditionally made doing business
- there difficult for U.S. businesses. In fact, the Japanese
- Government has shifted its position towards encouraging
- imports and promoting investment. However, some knotty
- regulatory barriers and discrimination do still exist.
- When a company cannot solve such problems independently or
- through legal advisers in Japan, the U.S. Government, and
- particularly the U.S. Department of Commerce, can often
- provide assistance. U.S. companies should not be afraid of
- retaliation by the Japanese bureaucracy for seeking
- fairness and transparency in Japanese administrative
- regulations. There are difficulties, but upon closer
- inspection, they are not as formidable as they first
- appear. With a little hard work, they can usually be
- overcome. Many U.S. firms now realize that they can no
- longer afford not to make a commitment to the Japanese
- market. The ultimate benefits of getting established in one
- of the world's largest, most advanced, and dynamic
- economies, more than repay the initial effort and long-term
- commitment.
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